Local PC market up 12.7% in Q2

The New Zealand PC market grew by 12.7% in the second quarter compared to the same period last year according to latest figures from market researcher International Data (IDC). Total units shipped were 81,000, with Compaq accounting for 21% of them, followed by Hewlett-Packard, IBM, Dell and Toshiba.

The New Zealand PC market grew by 12.7% in the second quarter compared to the same period last year according to latest figures from market researcher International Data (IDC).

Total units shipped were 81,000, with Compaq accounting for 21% of them, followed by Hewlett-Packard, IBM, Dell and Toshiba.

Compaq's market share is slightly down compared to 22.8% for the same quarter in 1998, but its business grew by 5%.

IDC New Zealand manager Dinesh Kumar says the top five vendors collectively increased their share by 17.7%.

"This is a very good growth because it's faster than the total growth in the market compared to the same period last year," says Kumar. He attributes the growth to several things.

"The Y2K issue and the introduction of Pentium III processors early this year by Intel generated a lot of sales," says Kumar. "Also, there are a lot of new initiatives in the market; the 'free PC' is a good example, and that will create a lot of demand."

However, Kumar is expecting slower growth in the last two quarters. "The growth rates seen in the past two quarters can't continue. There will be some growth but not at the same level," he says.

The worldwide PC market grew by more than 26% in the second quarter compared with the year before, totalling 25.6 million units, but down 2.5% from the first quarter. According to the analyst all of the "top-tier" vendors - Compaq, Dell, IBM, Hewlett-Packard and Gateway - enjoyed global shipment growth of 30% or more over last quarter, with Dell and IBM topping the list at 50% and 47%, respectively.

Compaq, meanwhile, had the most worldwide shipments for the quarter with about 3.7 million. In the US, however, Compaq's lead was quite narrow.

- New Zealand reseller news

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